By Jonathan Davies

Morrisons has announced price cuts on 200 of its "everyday" items.

"Cupboard essentials" like milk and bread will be cut by up to a third, making them "amongst the lowest on the market", chief executive David Potts said.

It is the latest twist in the price war between the 'big four' supermarkets - Asda, Morrisons, Sainsbury's and Tesco.

Morrisons has suffered the most from the war, seeing its profits halve last year. But it was the only of the 'big four' to see sales grow during the 12 weeks to the end of May.

When its profits halved last year, Morrisons said it would invest more than £1 billion in cutting prices over three years.

Asda said it would commit £350m to slashing prices in the first quarter of the year, Sainsbury's is reducing prices on more than 1,000 items and Tesco is cutting prices on around 2,500 "essential" products.